Natus Medical sees Q4 adjusted EPS 52c-55c, consensus 48c

Natus Medical upgraded to Outperform on earnings power at Raymond James

As previously reported, Raymond James analyst Jayson Bedford upgraded Natus Medical to Outperform from Market Perform with a $46 price target. Bedford recently met with management and came away more confident that capital deployment will be larger than expected, potentially increasing earnings meaningfully and acting as a catalyst for shares. He believes Natus will likely add businesses that are adjacent to their core Neurology and Newborn businesses, and would not be surprised to see it carve out a non-core business from a larger entity.

09/26/16

ROTH

09/26/16NO CHANGETarget $47ROTHBuy

Otometrics acquisition positive for Natus Medical, says Roth Capital

Roth Capital analyst Chris Lewis notes that Natus Medical announced the acquisition of Otometrics for $145M and an expected Q3 revenue shortfall. While the analyst is disappointed with the shortfall, he believes the main driver is transient in nature and should pass by the beginning of 2017. Further, Lewis sees the Otometrics acquisition as a "meaningful positive" for Natus Medical as it significantly expands the company and should allow it to reach $500M in annual revenues in 2017. He reiterates a Buy rating and $47 price target on the shares.

Roth Capital analyst Chris Lewis notes that Natus Medical is expected to release full quarterly earnings on Wednesday, but has already announced a Q3 revenue shortfall. While the analyst is disappointed with the miss, he believes the likely earning accretion from Otometrics acquisition should drive stock upside over the medium to long term. He reiterates a Buy rating and $47 price target on the shares.